Stock Predictions – Stock Picking Methods

    Published: 06-16-2009
    Views: 4,048
    Financial Advisor Ric Edelman provides tips on how to avoid bad stock predictions including stock picking methods.

    Ric Edelman: There are lots of ways you can pick stocks. Some love to examine past performance. Others will tell you whether to buy or sell, depending on which political party is in power or what movies are playing at the theater.

    There are a zillion ways to predict stocks, you can find a pattern pretty much anywhere, if you look hard enough, and to prove this I came up with one myself. I call it the Edelman Brand Spectrum Method.

    First, I studied the stocks of the S&P 500 over the past five years and then I divided the companies by the color of their logos.

    Yeah, my finding shows that companies with gray logos are the best. Gray logo companies gained 43% over one year as of June 30, 2010; 7% over 3 years and 12% over 5 years. And my research shows that you should stay away from companies with yellow logos, they lost 8% per year on average. My BS Method offers other insights too.

    Popular colors don't make profitable stocks. Those with red or blue logos, that's 322 companies, they returned just 1% per year.

    I hope you realize how stupid this is, not just my BS Method, all stock-picking systems are stupid. Their creators may call them predictions, they may give them official sounding names, but in the end they are really all just BS.